To meet the objective of identifying and eliminating institutional racism in TDMHMR, four aims were established: (1) develop an operational definition; (2) diagnose the extent of institutional racism within the Department by a systematic method of data collection; (3) isolate those conditions which perpetuate institutional racism; (4) develop, implement, and evaluate corrective action plans to alter those conditions. Essentially, all efforts are being directed towards developing a model of organizational diagnosis and change which can be used by this and other organizations to better conceptualize institutional racism and to combat it. Year 1 was a pilot study using four of the eight TDMHMR facilities. Diagnosis included administration of a behavioral checklist, content analysis of written policy, and a study of informal policy and norms. After data analysis, change programs will be designed, implemented, and evaluated. In Year 2, refinement of the checklist and administration of the remaining facilities will yield new analyses and change efforts in addition to those resulting from the pilot study. Year 3 will build on earlier efforts and will include a study of racism in service delivery plus diagnosis and change in the community programs.